Capstead Mortgage Corporation Announces First Quarter 2013 Results Business Wire DALLAS -- April 24, 2013 Capstead Mortgage Corporation (NYSE: CMO) (“Capstead” or the “Company”) today announced financial results for the quarter ended March31, 2013. First Quarter 2013 Highlights *Earnings of $34.9million or $0.31 per diluted common share *Financing spreads on residential mortgage investments increased 2 basis points to 1.15% *Operating costs as a percentage of average long-term investment capital decreased 2 basis points to 0.77% *Book value increased $0.02 to $13.60 per common share *Portfolio leverage ended the quarter at 8.06 times long-term investment capital For the quarter ended March31, 2013 Capstead reported net income of $34,918,000 or $0.31 per diluted common share. This compares to net income of $35,084,000 or $0.31 per diluted common share for the quarter ended December31, 2012. The Company paid a first quarter 2013 dividend of $0.31 per common share on April19, 2013. First Quarter Earnings and Related Discussion Capstead is a self-managed real estate investment trust for federal income tax purposes. The Company earns income from investing in a leveraged portfolio of residential adjustable-rate mortgage pass-through securities, referred to as ARM securities, issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. For the quarter ended March31, 2013, the Company reported net interest margins of $37,925,000 compared to $38,307,000 for the quarter ended December31, 2012. Financing spreads on residential mortgage investments averaged 1.15% during the first quarter of 2013, an increase of 2 basis points from financing spreads earned during the fourth quarter of 2012. Financing spread on residential mortgage investments is a non-GAAP financial measure based solely on yields on residential mortgage investments, net of borrowing rates on repurchase arrangements and similar borrowings, adjusted for currently-paying interest rate swap agreements held for hedging purposes – see page 9 for further information. Yields on Capstead’s residential mortgage investments averaged 1.73% during the first quarter of 2013, a decrease of 3 basis points from yields reported for the fourth quarter of 2012 reflecting lower weighted average coupons on the Company’s ARM securities portfolio. Yield adjustments resulting from investment premium amortization averaged 84 basis points both quarters reflecting stable mortgage prepayment levels. Mortgage prepayments expressed as a constant prepayment rate, or CPR, averaged 19.65% during the first quarter of 2013, compared to an average CPR of 19.60% during the fourth quarter of 2012. The following table illustrates the progression of Capstead’s portfolio of residential mortgage investments for the quarter (dollars in thousands): Residential mortgage investments, beginning of quarter $ 13,860,158 Decrease in unrealized gains on securities classified as available-for-sale (7,705 ) Portfolio acquisitions (principal amount) at average lifetime purchased yields of 2.09% 803,409 Investment premiums on acquisitions 36,474 Portfolio runoff (principal amount) (809,546 ) Investment premium amortization (28,385 ) Residential mortgage investments, end of quarter $ 13,854,405 Interest rates on repurchase arrangements and similar borrowings, adjusted for currently-paying interest rate swap agreements held as hedges against changes in short-term interest rates, averaged 0.58% during the first quarter of 2013, a decrease of five basis points over borrowing rates incurred during the fourth quarter of 2012. Lower borrowing rates during the first quarter reflect lower prevailing market rates for repurchase arrangements. Borrowing rates also benefited from the replacement of $1.10billion in interest rate swap agreements that required payment of fixed rates averaging 81basis points that terminated during the quarter with $1.10billion in swap agreements requiring payment of fixed rates averaging 50 basis points. At March31, 2013 repurchase arrangements and similar borrowings totaled $12.82billion, consisting primarily of 30-day borrowings with 24 counterparties at rates averaging 0.40%, before consideration of related swap agreements. At March31, 2013, the Company held currently-paying swap agreements requiring the payment of fixed rates of interest averaging 0.67% on notional amounts totaling $4.20billion with average remaining interest-payment terms of 12 months. Additionally, as of quarter-end the Company had entered into forward-starting swap agreements with notional amounts totaling $2.10billion that will begin requiring fixed rate interest payments averaging 0.45% for two-year periods that commence on various dates between June 2013 and January 2014, with an average expiration of 31 months. Variable payments, typically based on one-month LIBOR, that are received by the Company under swap agreements tend to offset a significant portion of the interest owed on a like amount of the Company’s borrowings under repurchase arrangements. Capstead’s long-term investment capital, which consists of common and perpetual preferred stockholders’ equity and long-term unsecured borrowings (net of related investments in statutory trusts), declined modestly during the first quarter of 2013 to $1.59billion at quarter-end. Portfolio leverage (borrowings under repurchase arrangements divided by long-term investment capital) increased modestly to 8.06 to one at March31, 2013 compared to 8.00 to one at December31, 2012. Operating costs as a percentage of average long-term investment capital declined to 0.77% during the first quarter of 2013 compared to 0.79% during the fourth quarter of 2012, due primarily to lower compensation-related expense, a significant portion of which is performance-based. Common Share Repurchases Early in January 2013 Capstead repurchased 638,000 common shares pursuant to the Company’s $100million stock repurchase authorization at an average price of $11.43 per share or 84% of trailing book value per common share. No further repurchases have been made since January, leaving $58million of this authorization available for future repurchases. Common share repurchases may continue in future periods subject to market conditions and blackout periods associated with the dissemination of earnings and dividend announcements and other important Company-specific news. Book Value per Common Share Nearly all of Capstead’s residential mortgage investments and all of its interest rate swap agreements are reflected at fair value on the Company’s balance sheet and are therefore included in the calculation of book value per common share (total stockholders’ equity, less perpetual preferred share liquidation preferences, divided by common shares outstanding). The fair value of these investments is impacted by market conditions, including changes in interest rates, and the availability of financing at reasonable rates and leverage levels, among other factors. The Company’s investment strategy attempts to mitigate these risks by focusing on investments in agency-guaranteed residential mortgage pass-through securities, which are considered to have little, if any, credit risk and are collateralized by ARM loans with interest rates that reset periodically to more current levels. Because of these characteristics, the fair value of Capstead’s portfolio is considerably less vulnerable to significant pricing declines caused by credit concerns or rising interest rates compared to portfolios containing a significant amount of non-agency and/or fixed-rate mortgage securities. The following table illustrates the progression of Capstead’s book value per common share for the quarter ended March31, 2013: Book value per common share, beginning of quarter $ 13.58 Capital transactions: Accretion from common share repurchases 0.01 Increase related to stock awards 0.01 Decrease in fair value of mortgage securities classified as available-for-sale (0.08 ) Increase in fair value of interest rate swap agreements designated as cash flow hedges of: Repurchase arrangements and similar borrowings 0.05 Unsecured borrowings 0.03 Book value per common share, end of quarter $ 13.60 Increase in book value per common share during the quarter $ 0.02 Management Remarks Commenting on current operating and market conditions, Andrew F. Jacobs, President and Chief Executive Officer, said, “First quarter results reflect stable quarter over quarter mortgage prepayment levels on our agency-guaranteed ARM securities portfolio as well as lower borrowing costs, which more than offset slightly lower weighted average coupons on the portfolio. Lower borrowing costs reflect lower market rates during the quarter as well as the rollover to lower rates of a significant portion of our currently-paying swap position. Together, these factors contributed to a 2 basis point increase in our financing spreads to 1.15%, with earnings remaining at $0.31 per diluted common share. We also posted a $0.02 increase in book value to $13.60 per common share reflecting stable quarter over quarter pricing levels for agency-guaranteed ARM securities. “Looking forward to the rest of 2013, we are optimistic our portfolio will continue to perform well. Mortgage prepayment levels should remain manageable in the coming quarters given that approximately 91% of the mortgages underlying our current-reset ARM securities were originated prior to 2008 and carry coupon interest rates at or below prevailing fixed mortgage rates diminishing the economic advantage, if any, of refinancing. This should help contain investment premium amortization costs, which decreased $0.9million this quarter to $28.4million. Also, further declines in weighted average coupons should be relatively modest given that an increasing number of mortgage loans underlying our current-reset ARM securities are at or near fully-indexed levels. With respect to our borrowing costs, another $1.80billion notional amount of our interest rate swaps with average fixed rates of 0.87% will mature over the remainder of 2013 and have already been replaced with swaps averaging 0.45% allowing for further declines in borrowing costs provided market rates for short-term borrowings remain reasonable. “We remain confident in and focused on our investment strategy of managing a conservatively leveraged portfolio of agency-guaranteed residential ARM securities that can produce attractive risk-adjusted returns over the long term while reducing, but not eliminating, sensitivity to changes in interest rates.” Earnings Conference Call Details An earnings conference call and live audio webcast will be hosted Thursday, April25, 2013 at 9:00a.m. ET. The conference call may be accessed by dialing toll free (888) 317-6016 in the U.S., (855) 669-9657 for Canada, or (412) 317-6016 for international callers. A live audio webcast of the conference call can be accessed via the investor relations section of the Company’s website at www.capstead.com, and an audio archive of the webcast will be available for approximately 60 days. A replay of the call will be available through June26, 2013 by dialing toll free (877) 344-7529 in the U.S. or (412) 317-0088 for international callers and entering conference number 10027162. Cautionary Statement Concerning Forward-looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “will be,” “will likely continue,” “will likely result,” or words or phrases of similar meaning. Forward-looking statements are based largely on the expectations of management and are subject to a number of risks and uncertainties including, but not limited to, the following: *changes in general economic conditions; *fluctuations in interest rates and levels of mortgage prepayments; *the effectiveness of risk management strategies; *the impact of differing levels of leverage employed; *liquidity of secondary markets and credit markets; *the availability of financing at reasonable levels and terms to support investing on a leveraged basis; *the availability of new investment capital; *the availability of suitable qualifying investments from both an investment return and regulatory perspective; *changes in legislation or regulation affecting Fannie Mae, Freddie Mac and similar federal government agencies and related guarantees; *deterioration in credit quality and ratings of existing or future issuances of Fannie Mae, Freddie Mac or Ginnie Mae securities; *changes in legislation or regulation affecting exemptions for mortgage REITs from regulation under the Investment Company Act of 1940; and *increases in costs and other general competitive factors. In addition to the above considerations, actual results and liquidity are affected by other risks and uncertainties which could cause actual results to be significantly different from those expressed or implied by any forward-looking statements included herein. It is not possible to identify all of the risks, uncertainties and other factors that may affect future results. In light of these risks and uncertainties, the forward-looking events and circumstances discussed herein may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Forward-looking statements speak only as of the date the statement is made and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers of this document are cautioned not to place undue reliance on any forward-looking statements included herein. CAPSTEAD MORTGAGE CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except ratios and per share amounts) March 31, 2013 December 31, 2012 (unaudited) Assets Residential mortgage investments ($13.45 billion pledged under repurchase arrangements at March 31, 2013 and December 31, $ 13,854,405 $ 13,860,158 2012) Cash collateral receivable from 40,233 49,972 interest rate swap counterparties Interest rate swap agreements at fair 114 169 value Cash and cash equivalents 471,510 425,445 Receivables and other assets 120,725 130,402 Investments in unconsolidated 3,117 3,117 affiliates $ 14,490,104 $ 14,469,263 Liabilities Repurchase arrangements and similar $ 12,821,519 $ 12,784,238 borrowings Interest rate swap agreements at fair 24,763 32,868 value Unsecured borrowings 103,095 103,095 Common stock dividend payable 30,349 29,512 Accounts payable and accrued expenses 20,286 22,425 13,000,012 12,972,138 Stockholders’ equity Preferred stock - $0.10 par value; 100,000 shares authorized: $1.60 Cumulative Preferred Stock, Series A, 186 shares issued and outstanding ($3,054 aggregate liquidation preference) at March 31, 2,604 2,604 2013 and December 31, 2012 $1.26 Cumulative Convertible Preferred Stock, Series B, 16,493 shares issued and outstanding ($187,692 aggregate liquidation preference) at March 31, 2013 and December 31, 2012 186,388 186,388 Common stock - $0.01 par value; 250,000 shares authorized: 95,532 and 96,229 shares issued and outstanding at 955 962 March 31, 2013 and December 31, 2012, respectively Paid-in capital 1,359,879 1,367,199 Accumulated deficit (353,852 ) (353,938 ) Accumulated other comprehensive 294,118 293,910 income 1,490,092 1,497,125 $ 14,490,104 $ 14,469,263 Long-term investment capital (Stockholders’ equity and unsecured borrowings net of investments in $ 1,590,070 $ 1,597,103 related unconsolidated affiliates) (unaudited) Portfolio leverage (Repurchase arrangements and similar borrowings 8.06:1 8.00:1 divided by long-term investment capital) (unaudited) Book value per common share (based on common shares outstanding and calculated assuming liquidation $ 13.60 $ 13.58 preferences for the Series A and B preferred stock) (unaudited) CAPSTEAD MORTGAGE CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited) Quarter Ended March 31 2013 2012 Interest income: Residential mortgage investments $ 58,468 $ 65,733 Other 112 150 58,580 65,883 Interest expense: Repurchase arrangements and similar borrowings (18,468 ) (14,103 ) Unsecured borrowings (2,187 ) (2,187 ) (20,655 ) (16,290 ) 37,925 49,593 Other revenue (expense): Miscellaneous other revenue (expense) (30 ) (169 ) Incentive compensation (351 ) (1,538 ) Salaries and benefits (1,610 ) (1,827 ) Other general and administrative expense (1,081 ) (954 ) (3,072 ) (4,488 ) Income before equity in earnings of unconsolidated affiliates 34,853 45,105 Equity in earnings of unconsolidated 65 65 affiliates Net income $ 34,918 $ 45,170 Net income available to common stockholders: Net income $ 34,918 $ 45,170 Less cash dividends paid on preferred shares (5,270 ) (5,213 ) $ 29,648 $ 39,957 Net income per common share: Basic $ 0.31 $ 0.45 Diluted 0.31 0.44 Weighted average common shares outstanding: Basic 95,020 89,449 Diluted 95,450 89,859 Cash dividends declared per share: Common $ 0.310 $ 0.430 Series A Preferred 0.400 0.400 Series B Preferred 0.315 0.315 CAPSTEAD MORTGAGE CORPORATION FAIR VALUE ANALYSIS (in thousands, unaudited) March 31, 2013 December 31, 2012 Unpaid Basis or Unrealized Unrealized Investment Fair Gains Gains Principal Notional Premiums Value (Losses) (Losses) Balance Amount Residential mortgage investments classified as available-for-sale: ^(a) (b) Fannie Mae/Freddie Mac securities: Current-reset ARMs $ 6,667,734 $ 165,043 $ 6,832,777 $ 7,070,595 $ 237,818 $ 250,550 Longer-to-reset 4,858,986 198,467 5,057,453 5,107,686 50,233 43,772 ARMs Fixed-rate 57 – 57 61 4 5 Ginnie Mae securities : Current-reset ARMs 795,542 19,500 815,042 830,846 15,804 14,693 Longer-to-reset 787,244 29,978 817,222 832,107 14,885 17,429 ARMs $ 13,109,563 $ 412,988 $ 13,522,551 $ 13,841,295 $ 318,744 $ 326,449 Interest rate swap $ 6,400,000 $ (24,649 ) $ (24,626 ) $ (32,539 ) positions ^(c) Unrealized gains and losses on residential mortgage securities classified as available-for-sale are recorded as a component of Accumulated other comprehensive income in Stockholders’ equity. Gains or (a) losses are generally recognized in earnings only if sold. Residential mortgage securities classified as held-to-maturity with a cost basis of $5 million and unsecuritized investments in residential mortgage loans with a cost basis of $8 million are not subject to mark-to-market accounting and therefore have been excluded from this analysis. Capstead classifies its residential ARM securities based on the average (b) length of time until the loans underlying each security reset to more current rates (see page 10 of this release for further information). To help mitigate exposure to higher short-term interest rates, Capstead typically uses currently-paying and forward-starting one- and three-month LIBOR-indexed, pay-fixed, receive-variable, interest rate swap agreements with two-year interest payment terms. Additionally, the Company has entered into three forward-starting swap agreements with notional amounts totaling $100 million and terms coinciding with the variable-rate terms of the Company’s long-term unsecured borrowings that (c) begin in 2015 and 2016 and end with their maturities in 2035 and 2036. Swap positions are carried on the balance sheet at fair value with related unrealized gains or losses arising while designated as cash flow hedges for accounting purposes reflected as a component of Accumulated other comprehensive income in Stockholders’ equity and related hedge ineffectiveness recognized in Interest expense. As of March 31, 2013, these swap positions had the following characteristics (dollars in thousands): Average Unrealized Period of Notional Fixed Rate Fair Contract Gains Expiration Amount Payment Value (Losses) Requirement Currently-paying two-year contracts: Second quarter $ 700,000 0.96 % $ (809 ) $ (808 ) 2013 Third quarter 300,000 0.87 (809 ) (809 ) 2013 Fourth quarter 800,000 0.78 (2,567 ) (2,559 ) 2013 First quarter 200,000 0.60 (531 ) (531 ) 2014 Second quarter 400,000 0.51 (996 ) (989 ) 2014 Third quarter 200,000 0.51 (596 ) (596 ) 2014 Fourth quarter 500,000 0.58 (2,212 ) (2,212 ) 2014 First quarter 1,100,000 0.50 (3,814 ) (3,814 ) 2015 4,200,000 0.67 (12,334 ) (12,318 ) Forward-starting two-year contracts: Second quarter 200,000 0.43 (335 ) (335 ) 2015 Third quarter 400,000 0.47 (587 ) (587 ) 2015 Fourth quarter 1,200,000 0.45 (449 ) (442 ) 2015 First quarter 300,000 0.47 (2 ) (2 ) 2016 $ 6,300,000 $ (13,707 ) $ (13,684 ) Forward-starting contracts expiring in 2035 and 2036 related to unsecured $ 100,000 4.09 $ (10,942 ) $ (10,942 ) borrowings After consideration of related swap positions, the Company’s residential mortgage investments and related borrowings under repurchase arrangements * had durations as of March 31, 2013 of approximately ten and nine months, respectively, for a net duration gap of approximately one month. Duration is a measure of market price sensitivity to changes in interest rates. CAPSTEAD MORTGAGE CORPORATION FINANCING SPREAD ANALYSIS (unaudited) 2013 2012 Q1 Q4 Q3 Q2 Q1 Yields on residential mortgage investments:^(a) Cash yields 2.57 % 2.60 % 2.65 % 2.71 % 2.74 % Investment premium (0.84 ) (0.84 ) (0.79 ) (0.67 ) (0.60 ) amortization Adjusted yields 1.73 1.76 1.86 2.04 2.14 Related borrowing rates:^(b) Unhedged borrowing 0.41 0.45 0.41 0.37 0.32 rates Fixed swap rates 0.71 0.75 0.78 0.80 0.85 Adjusted borrowing 0.58 0.63 0.56 0.54 0.49 rates Financing spreads on residential 1.15 1.13 1.30 1.50 1.65 mortgage investments Annualized CPR 19.65 19.60 18.74 15.86 14.50 Cash yields are based on the cash component of interest income. Investment premium amortization is determined using the interest method (a) and incorporates actual and anticipated future mortgage prepayments. Both are expressed as a percentage calculated on an annualized basis on average amortized cost basis for the indicated periods. Unhedged borrowing rates represent average rates on repurchase agreements and similar borrowings. Fixed swap rates represent the average fixed rates on currently-paying interest rate swap agreements used to hedge short-term borrowing rates. Adjusted borrowing rates (b) reflect unhedged borrowing rates and swap rates as well as differences between variable rate payments received on the Company’s currently-paying swap agreements, which typically are based on one-month LIBOR, and unhedged borrowing rates as well as any measured hedge ineffectiveness, calculated on an annualized basis on average outstanding balances for the indicated periods. Financing spreads on residential mortgage investments, a non-GAAP financial measure, differs from total financing spreads, an all-inclusive GAAP measure, that is based on all interest-earning assets and all interest-paying liabilities. The Company believes that presenting financing spreads on residential mortgage investments provides useful information for evaluating the performance of the Company’s portfolio. The following reconciles these two measures. 2013 2012 Q1 Q4 Q3 Q2 Q1 Financing spreads on residential 1.15 % 1.13 % 1.30 % 1.50 % 1.65 % mortgage investments Impact of yields on other (0.05 ) (0.07 ) (0.05 ) (0.06 ) (0.06 ) interest-earning assets* Impact of borrowing rates on unsecured borrowings and other interest-paying (0.06 ) (0.06 ) (0.06 ) (0.07 ) (0.07 ) liabilities* Total financing 1.04 1.00 1.19 1.37 1.52 spreads Other interest-earning assets consist of overnight investments and cash collateral receivable from interest rate swap counterparties. Other * interest-paying liabilities consist of long-term unsecured borrowings (at a borrowing rate of 8.49%) that the Company considers a component of its long-term investment capital and cash collateral payable to interest rate swap counterparties. CAPSTEAD MORTGAGE CORPORATION RESIDENTIAL ARM SECURITIES PORTFOLIO STATISTICS (as of March 31, 2013) (dollars in thousands, unaudited) Amortized Fully Average Average Average Months Net Cost Basis WAC Indexed Net Periodic Lifetime To ARM Type ^(a) ^(b) ^(c) WAC Margins Caps Caps Roll ^(c) ^ (c) ^(c) ^(c) ^(a) Current-reset ARMs: Fannie Mae Agency $ 5,058,011 2.42 % 2.23 % 1.70 % 3.19 % 10.15 % 5.0 Securities Freddie Mac Agency 1,774,766 2.62 2.35 1.84 2.02 10.67 5.6 Securities Ginnie Mae Agency 815,042 2.44 1.68 1.51 1.02 9.17 7.2 Securities Residential 4,759 3.49 2.33 2.04 1.51 10.97 4.5 mortgage loans 7,652,578 2.47 2.20 1.71 2.69 10.16 5.4 Longer-to-reset ARMs: Fannie Mae Agency 3,132,756 2.94 2.49 1.76 4.92 7.95 43.6 Securities Freddie Mac Agency 1,924,697 2.96 2.56 1.84 4.94 7.98 46.1 Securities Ginnie Mae Agency 817,222 2.96 1.67 1.51 1.03 7.99 29.6 Securities 5,874,675 2.95 2.40 1.75 4.39 7.96 42.5 $ 13,527,253 2.68 2.29 1.73 3.43 9.21 21.3 Gross WAC (rate paid by 3.29 borrowers) ^(d) Capstead classifies its ARM securities based on the average length of time until the loans underlying each security reset to more current rates (“months-to-roll”) (less than 18 months for “current-reset” ARM (a) securities, and 18 months or greater for “longer-to-reset” ARM securities). Once an ARM loan reaches its initial reset date, it will reset at least once a year to a margin over a corresponding interest rate index, subject to periodic and lifetime limits or caps. Amortized cost basis represents the Company’s investment (unpaid principal balance plus unamortized investment premiums) before unrealized gains and losses. As of March 31, 2013, the ratio of (b) amortized cost basis to related unpaid principal balance for the Company’s ARM securities was 103.15. This table excludes $3 million in fixed-rate Agency Securities, $3 million in fixed-rate residential mortgage loans and $2 million in private residential mortgage pass-through securities held as collateral for structured financings. Net WAC, or weighted average coupon, is the weighted average interest rate of the mortgage loans underlying the indicated investments, net of servicing and other fees as of the indicated date. Net WAC is expressed as a percentage calculated on an annualized basis on the unpaid principal balances of the mortgage loans underlying these investments. Fully indexed WAC represents the weighted average coupon upon one or more resets using interest rate indexes and net margins as of the indicated date. Average net margins represent the weighted average levels over the underlying indexes that the portfolio can adjust to upon reset, usually subject to initial, periodic and/or lifetime limits, or caps, on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans. (c) ARM securities issued by the GSEs with initial fixed-rate periods of five years or longer typically have 500 basis point initial caps with 200 basis point periodic caps. Additionally, certain ARM securities held by the Company are subject only to lifetime caps or were not subject to a cap. For presentation purposes, average periodic caps in the table above reflect initial caps until after an ARM security has reached its initial reset date and lifetime caps, less related current net WAC, for ARM securities subject only to lifetime caps. At quarter-end, 79% of current-reset ARMs were subject to periodic caps averaging 1.85%; 6% were subject to initial caps averaging 2.22%; 14% were subject to lifetime caps, less related current net WAC, averaging 7.59%; and 1% were not subject to a cap. All longer-to-reset ARM securities at March 31, 2013 were subject to initial caps. Gross WAC is the weighted average interest rate of the mortgage loans (d) underlying the indicated investments, including servicing and other fees paid by borrowers, as of the indicated balance sheet date. Contact: Capstead Mortgage Corporation Investor Relations Lindsey Crabbe, 214-874-2339
Capstead Mortgage Corporation Announces First Quarter 2013 Results
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